Bogotá — Latinos are making an increased contribution to the United States economy, and while they have not yet achieved major numbers among the boards of directors of Wall Street’s top companies, they have accounted for 9% of new appointments this year, up from 3% in 2018.
According to a report from the recruitment firm Spencer Stuart, the presence of Latino or Hispanic directors on boards has also increased by four percentage points over the last decade, rising from 5% in 2013 to 9% in 2023.
The Latino population in the US has been growing at a significant rate and now totals around 62.5 million, or almost a fifth of all Americans.
It has been estimated that the US Latino population will grow to 119 million by 2060. The share of new Latino directors among S&P 500 companies hit a decade-low of 3% in 2018 and rose to 8% in 2022.
Among other minority groups, black directors have the highest representation among new board members this year at 15%, despite a sharp drop from 26% in 2022. They are followed by Asians at 11%. According to the survey, 67% of new directors identify themselves as women and/or underrepresented minorities.
Meanwhile, 20% of the respondents indicated that their boards of directors prioritizes hiring women and underrepresented minorities. The overall diversity of the S&P 500 board composition has continued to change gradually, and limited board turnover has influenced year-over-year modifications. Some demographic groups on S&P 500 boards more closely resemble the overall US population, while others show significant disparities in their representation, the report states.
Average compensation for CEOs
The average compensation for CEOs of companies listed in the S&P 500 on Wall Street reached $16.7 million in 2022, while the average US worker earned $61,900 in the same period, according to figures from the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO).
Notably, none of the top ten highest-paid CEOs in the S&P 500, led by Alphabet Inc.’s leader, Sundar Pichai ($225.985 million), are of Latino descent.
Latinos in the US economy
It’s estimated that the Latin population generates wealth of $2.8 trillion in the US and owns 4.7 million businesses. The US Bureau of Labor Statistics reported that in 2022, foreign-born workers accounted for 18.1% of the US labor force, marking a record high.
“The proportion of foreign-born individuals has been on the rise since data collection began in 1996,” the bureau noted. According to the bureau’s report, 47.6% of the foreign-born workforce was Hispanic or Latino, while 24.7% were Asian, 16% were White, and 10.4% were Black.
According to US Census figures, over 18% of US consumers are of Hispanic origin. A survey by the Florida Atlantic University Business and Economics Polling Initiative (FAU BEPI) showed that 54% of surveyed Latinos believed they were in a better financial position than a year ago.
Meanwhile, 47% of Hispanics said they expect the country to experience favorable business conditions in the next year. Regarding the long-term economic outlook, 50% of respondents were slightly less optimistic in the first quarter.